Oil train derails, catches fire in Eastern Canada

A Canadian National Railway Co. train carrying crude oil and propane derailed in the eastern province of New Brunswick and sparked a blaze that was still burning more than 12 hours after the accident.

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By FREDERIC TOMESCO

BRUNSWICK (Bloomberg) -- A Canadian
National Railway Co. train carrying crude oil and propane
derailed in the eastern province of New Brunswick and sparked a
blaze that was still burning more than 12 hours after the
accident.

A helicopter is being brought in today to pinpoint what is
ablaze in the wreckage of the 122-car train that jumped the
tracks about 7 p.m. local time Tuesday near the town of Plaster
Rock, said Jim Feeny, a railroad spokesman. There are 14 cars
and a locomotive in the fire zone, Feeny said.

This morning, very soon, we will have aerial
surveillance, Feeny said by telephone. We will be
able to get ground forces in, safely, closer to the cars, and
determine exactly what is on fire. That will determine what we
and local authorities need to do to develop the response
plan.

Tuesday's accident and a Dec. 30 crude-train derailment in
North Dakota added to the attention on the risks of moving oil
by rail. As the US government weighs whether to approve
TransCanada Corp.s proposed Keystone XL pipeline, trains
are hauling more petroleum products amid a boom in shale-oil
production.

The safety debate was punctuated by the runaway crude train
that exploded and killed 47 people in July in Lac Megantic,
Quebec, Canadas deadliest rail disaster in more than a
century.

The fire in the Plaster Rock derailment was under control by
about 10 a.m. Wednesday, Canadian Broadcasting Corp. reported,
citing an unidentified railroad spokesman.

No Injuries

No crew members or residents were injured, Feeny said. About
50 to 60 people were evacuated in a two-kilometer (1.2 mile)
radius of the accident, the New Brunswick government said, and
Canadas Transportation Safety Board dispatched a team to
the site.

Rail accidents involving dangerous goods are on the rise in
Canada, with 132 such cases in the first 11 months of 2013, a
19% jump from a year earlier, according to the safety board.
The previous five-year average was 124.

That increase came amid a decline in Canadian rail accidents
of all types. Through November, the tally of 883 marked a 5.7%
drop from a year earlier, and the previous five-year average
was 987.

More Shipments

Canadian energy producers are backing proposals to move as
much as 1.1 million bpd by rail in the next three to five
years, according to the Canadian Energy Research Institute.
Thats up from 224,000 bpd last year, according to a
Peters & Co. report from August.

Canadian Nationals train originated in Toronto and was
heading for Moncton, New Brunswick, Feeny said. The cars were
bound for a variety of customers in eastern Canada,
he said, declining to be more specific. Canadian National has
an alternate line available until the eastern part of its
mainline has been cleared, he said.

Crude by rail is a fast-growing, if small, business for most
North American carriers.

Canadian Nationals revenue from crude oil shipments in
2013 probably amounted to about C$400 million, or 3% to 4% of
sales, CEO Claude Mongeau said at an investor meeting in
Toronto last month. The railroad may double its crude business
in the next two years, Mongeau said.

You can count on that, if we continue to move it
safely, Mongeau said Dec. 11.

Canadian National carried about 70,000 carloads of crude oil
last year, more than doubling 2012s tally and a 14-fold
increase over 2011, a slide presentation posted on the
railroads website. Four years ago, it didnt ship
any crude.

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Amazing, everytime it is a derailment.Is derailment the cause or the consequence of the fire?If derailment is the cause, don't we need to look more closely at the tracks and the trains rather than the goods that are being transported.There is a fairly large movement of Hydrocarbons by rail in India with a good safety record.Wil follow responses with interest.

SETH AMAKYE ACHEAMPONG01.09.2014

Oil train derailment and fire blaze without casualties and fatality will only be a miracle in my part of the world. But I can still understand the Emergency Response Systems in place in Canada.Can we however be a little more proactive to prevent these since the figures are going too up. So a little pat on your shoulders - CANADA